Infrastructure stocks are falling after President Donald Trump told Democratic leaders that passing his replacement for the North American Free Trade Agreement should come before talks on infrastructure. NAFTA FIRST: President Trump wrote in a letter to House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer on Tuesday that "Before we get to infrastructure, it is my strong view that Congress should first pass the important and popular USMCA trade deal," Bloomberg reported. "It will replace the job-killing Nafta, one of the worst trade deals ever entered into by our nation," Trump added. WHAT'S NOTABLE: On Wednesday, President Trump abruptly left a meeting with House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer at the White House, telling reporters that he would not discuss any legislation, including infrastructure, with Democrats as long as he was under investigation by several committees, CNBC's Christina Wilkie reported. The meeting between the president and Democratic lawmakers was meant to be a second official sit-down specifically focused on infrastructure, Wilkie notes. "I walked into the room and I told Senator Schumer and Speaker Pelosi, 'I want to do infrastructure' .... but we can't do it under these circumstances," Trump said. Senate Minority Whip Dick Durbin told reporters afterwards that there had been "high drama in the Cabinet Room," adding that everyone else was in attendance when Trump entered the room and "announced he was not going to go forward with the meeting, he was cancelling it." U.S. LIFTS STEEL AND ALUMINUM TARIFFS ON CANADA AND MEXICO: Late last week, the U.S. and Canada announced that a 25% tariff on steel imports, and a 10% tariff on aluminum, would end in 48 hours. It is widely expected the U.S. and Mexico will make a similar announcement soon. The U.S. implemented the tariffs last year due to worries over national security. Under the new pact, there will be no quotas on how much steel or aluminum the three countries buy from overseas. PRICE ACTION: Shares of U.S. infrastructure names are all lower including Vulcan Materials (VMC), Fluor Corporation (FLR) Aecom (ACM), as well as steel stocks including U.S. Steel (X), AK Steel (AKS) and Nucor (NUE).

Nucor announced a capital investment that will add vacuum degassing to its engineered bar capabilities at its bar mill in Darlington, South Carolina. Adding this capability will enable the mill to produce engineered bar products meeting some of the most stringent quality specifications in the industry. The vacuum degassing system is expected to begin operations in late 2020.

U.S. President Donald Trump has opted to lift steel and aluminum tariffs on Canada and Mexico, a move meant to ease an area of tension as Trump's broader trade agenda faces uncertainty, CNN's Kevin Liptak, Paula Newton, and Haley Byrd report. A joint statement from the U.S. and Canada said that the tariffs would be lifted within two days, as the two sides agreed on monitoring and enforcement mechanisms to prevent steel dumping that might impact prices, the authors note. Publicly traded companies in the steel space include AK Steel (AKS), ArcelorMittal (MT), Nucor (NUE), Steel Dynamics (STLD), TimkenSteel (TMST) and U.S. Steel (X). Publicly traded companies in the aluminum space include Alcoa (AA), Arconic (ARNC), Century Aluminum (CENX), Constellium (CSTM) and Kaiser Aluminum (KALU). Reference Link

The Trump administration has reached a deal with Canada and Mexico to lift steel and aluminum tariffs, Washington Post reports. The deal, which avoids quotas on steel from the two countries, which Canada and Mexico had opposed, is a "significant step" toward congressional approval of the United States-Mexico-Canada Agreement, says the Post. Publicly traded companies in the steel space include AK Steel (AKS), ArcelorMittal (MT), Nucor (NUE), Steel Dynamics (STLD), TimkenSteel (TMST) and U.S. Steel (X). Reference Link

The United States is set to remove steel and aluminum tariffs on Canada and Mexico in favor of stronger enforcement actions, a move that helps provide the pathway for USMCA ratification, Bloomberg reports, citing people familiar with the matter. The effective date for lifting the tariffs remains the outstanding issue, the report says. Publicly traded companies in the steel space include AK Steel (AKS), ArcelorMittal (MT), Nucor (NUE), Steel Dynamics (STLD), TimkenSteel (TMST) and U.S. Steel (X). Publicly traded companies in the aluminum space include Alcoa (AA), Arconic (ARNC), Century Aluminum (CENX), Constellium (CSTM) and Kaiser Aluminum (KALU). Reference Link

U.S. Treasury Secretary Steven Mnuchin told a Senate Appropriations subcommittee that the Trump administration is making progress in resolving steel and aluminum tariffs that were applied to Canada and Mexico, the Wall Street Journal's Josh Zumbrun reports. Mnuchin also said that negotiators will likely travel to China soon to continue talks with Beijing and indicated that trade conflicts with Canada and Mexico are near resolution, Zumbrun says. "I think we are close to an understanding with Mexico and Canada" on settling the steel and aluminum tariffs, Mnuchin said, adding that resolving tariffs is "a very important part" of passing the U.S.-Mexico-Canada Agreement. Publicly traded companies in the steel space include AK Steel (AKS), ArcelorMittal (MT), Nucor (NUE), Steel Dynamics (STLD), TimkenSteel (TMST) and U.S. Steel (X). Publicly traded companies in the aluminum space include Alcoa (AA), Arconic (ARNC), Century Aluminum (CENX), Constellium (CSTM) and Kaiser Aluminum (KALU). Reference Link

The Hill's Jordan Fabian writes that Speaker Nancy Pelosi and Senate Democratic Leader Charles Schumer said they held a constructive meeting with President Trump on Monday at which they agreed to seek a deal on a $2 trillion infrastructure bill. Pelosi and Schumer said they and the President had not come to an agreement on how to fund the $2 trillion bill " to improve the nation's roads, bridges, waterways, and broadband, but that they had agreed to meet in another three weeks." Companies in the infrastructure space include: Vulcan Materials (VMC), Martin Marietta (MLM), American Tower (AMT), Kinder Morgan (KMI), Quanta Capital (QNTA) Nucor (NUE) and Fluor (FLR). Reference Link